Good morning Finn,

French AI darling Mistral might be European policymakers’ best shot at a homegrown AI champion to compete with the big beasts in the US and China — but that hasn’t stopped the company working on its relationships with foreign investors. 

As Sifted senior reporters Freya Pratty and Daphné Leprince-Ringuet write today, Mistral has been making inroads with deep-pocketed investors in the Middle East, from Saudi Arabia's Public Investment Fund to Dubai's Damac and (reportedly) other investors in Abu Dhabi. 

As well as a near-limitless cash supply, the region is also becoming the company's testing ground: from an Arabic-language AI model to an infrastructure deal with Emirati AI leader G42, Mistral is carving out a central role in the Gulf's AI ambitions. 

But this raises a question for Europe: Can we claim "technological sovereignty" if our biggest success is bankrolled by foreign investors? Or is it more complicated than that? As always, I'm keen to hear your thoughts. 

Elsewhere today:

• 9 female fintech founders to watch 
• Defence tech market map: Over 50 startups across Europe

/A message from our sponsor J.P. Morgan

Expanding to the US?

Unlock US growth with expert guidance, dedicated banking, competitive rates, tailored treasury solutions and merchant services. Contact a banker today and ask about Global Passport.

🥄 Italian unicorn Bending Spoons secured more than €500m in debt from banking giants like J.P. Morgan and Goldman Sachs. The funding will help the hyper-acquisitive company make even more acquisitions, even faster, it confirmed to Sifted.

Scaling into Europe? Build smart from the start

Trust, compliance and digital readiness aren't extras. They are essentials. In our latest Sifted Talks hear how startups are expanding into the EU with smarter infrastructure, borderless hiring and digital-first growth.

🪖 Tracked: defence tech startups building across Europe, from Latvia to Spain. Sifted maps over 50 defence startups.

👉 9 female fintech founders to watch. 

🇦🇪 French AI darling Mistral is increasingly turning its attention to Gulf countries, attracted by deep pockets and plenty of commercial opportunities. What’s behind the startup’s push eastward?

📈 'The amount of inference compute needed is already 100x more': How Europe's AI companies can meet demands. (Sponsored by Nebius)

If you’d like to submit a deal, get in touch. 

London-based Smart, which is a pension provider, raised €69.4m in debt funding led by CIBC Innovation Banking.

Hamburg, Germany-based Plancraft, a construction management and planning platform for tradespeople, raised €38m in Series B funding. Headline led the round and was joined by investors including Creandum, High-Tech Gründerfonds and Xdeck.

Stockholm-based Candela, an electric boat manufacturer, raised €6.9m in funding from EQT Ventures.

Who takes the top spot for B2B SaaS in Europe?

Our latest B2B SaaS Rising 100 report spotlights the next soonicorn's in European software. See who made the cut, explore the market forces shaping them and dive into the latest insights on the era of AI.